HISTORIA de las NIIF | Análisis de sus orígenes, emisión y uso

Summary

The video explains why International Financial Reporting Standards (IFRS/NIIF) are used, traces the development of U.S. and international accounting standards, describes efforts to bring them closer together, and compares selected IFRS and U.S. GAAP requirements.

Why common accounting standards matter

• Global trade, investment, and multinational businesses mean investors increasingly compare companies across countries.
• Financial statements provide information about an entity’s financial position and performance.
• Statements that look similar may be based on different accounting rules, methods, currencies, or languages. These differences can make comparisons difficult and reduce confidence in the information.
• Common standards aim to make financial information more comparable, understandable, timely, relevant, and verifiable, helping users make economic decisions.

Development of U.S. GAAP

The video describes U.S. GAAP as standards used primarily by companies based in the United States and by some U.S.-controlled companies operating abroad.

• Early standardization efforts: Accountants from several countries met at the 1904 International Congress of Accountants in St. Louis to discuss common accounting and auditing practices. Formal adoption was limited because the profession was not yet consistently organized or recognized across countries.
• Early professional and regulatory work: The video traces the growth of U.S. accounting organizations and identifies a 1917 memorandum on balance-sheet audits as an early step toward standardized practice.
• After the 1929 stock-market crash: Concerns about unreliable financial reporting prompted further work on accounting principles and transparency.
• Accounting Research Bulletins: The Committee on Accounting Procedure issued bulletins from 1939 to 1953. The video notes that Bulletin 43 consolidated earlier guidance.
• Accounting Principles Board: From 1959 to 1973, the APB issued opinions covering topics such as leases, business combinations, intangible assets, and accounting-policy disclosures.
• FASB: In 1973, the Financial Accounting Standards Board became the U.S. standard-setter, issuing standards known as Statements of Financial Accounting Standards.
• ASC codification: In 2009, the standards were reorganized into the Accounting Standards Codification (ASC), creating a searchable structure of topics. The video emphasizes that this reorganized the standards rather than changing their underlying substance.

Development of international standards

• In 1966, accountants from the United States, United Kingdom, and Canada formed a joint study group to address accounting topics and harmonize practices.
• The International Accounting Standards Committee (IASC) was established in London in 1973, with member bodies from countries including Germany, Australia, Canada, France, Japan, Mexico, the Netherlands, Ireland, the United Kingdom, and the United States.
• The first International Accounting Standard, IAS 1, was issued in 1975. The IASC issued 41 IAS over time; some were later revised, replaced, or withdrawn.
• In 2001, the IASB took over as the international standard-setting body and began developing International Financial Reporting Standards (IFRS), alongside the existing IAS.
• The video highlights the European Union’s role in expanding IFRS adoption. An EU regulation in 2002 set the direction for listed companies in member states to use IFRS from 2005.
• IFRS 1, on first-time adoption, was issued in 2003. The video also mentions a new Conceptual Framework in 2010 and notes that IFRS 17 replaced IFRS 4 on insurance contracts.

Accounting convergence and the Norwalk Agreement

“Convergence” means reducing differences between standards so that financial reporting becomes more consistent across jurisdictions. The video explains that the European Union’s growing economic influence gave it greater weight in discussions with the United States. European companies had often faced extra costs and complexity when preparing accounts under different rules for different markets.

The Norwalk Agreement, signed in September 2002 by the IASB and FASB, formalized their commitment to work toward convergence. Its goals included reducing differences between IFRS and U.S. GAAP, improving comparability, supporting efficient capital markets, and moving toward a common set of high-quality standards.

The agreed work included:

• Holding joint meetings and aligning the organizations’ agendas.
• Coordinating staff and major projects.
• Tackling short-term differences where a practical solution could be reached by adopting or adapting an existing standard.
• Running joint projects, including work on revenue recognition and business combinations.
• Identifying differences in recognition, measurement, presentation, and disclosure, then considering how to resolve them.
• Monitoring each organization’s progress and coordinating the work of their interpretive bodies.
• Considering convergence explicitly when making standard-setting decisions.

The video gives examples of topics addressed or considered, including impairment of non-financial assets, income taxes, fair value, consolidation, liabilities versus equity, financial-statement presentation, employee benefits, leases, and intangible assets.

Selected IFRS and U.S. GAAP differences

The presenter stresses that convergence did not eliminate all differences. Examples discussed include:

• Comparative financial statements: IAS 1 requires comparative information for the preceding period. U.S. GAAP does not impose the same general requirement as described in the video, although companies commonly provide comparative figures and public-company rules may require them.
• Offsetting: IFRS generally prohibits offsetting assets and liabilities unless a standard permits or requires it. Under U.S. GAAP, offsetting is allowed when specified conditions for a legal right of offset are met.
• Expense presentation: IFRS permits expenses to be presented by nature or by function. The video says U.S. GAAP generally presents them by function.
• Inventory costing: IFRS permits FIFO and weighted-average costing but prohibits LIFO. U.S. GAAP permits LIFO as well as other methods.
• Cash-flow statements: Both frameworks allow direct or indirect presentation of operating cash flows, but the video describes differences in how certain mixed transactions and specific cash flows are classified. It also notes that U.S. GAAP prohibits reporting cash flow per share.
• Interest and dividends: The video describes more classification options under IFRS for interest and dividends received or paid. Under U.S. GAAP, interest paid and received and dividends received are generally assigned to operating activities, while dividends paid are assigned to financing activities.
• Revenue recognition: Both frameworks use a five-step model:
  1. Identify the contract with the customer.
  2. Identify the performance obligations.
  3. Determine the transaction price.
  4. Allocate the price to the performance obligations.
  5. Recognize revenue as the obligations are satisfied.

The presentation notes differences in the collectability threshold for identifying a contract, the treatment of shipping and handling after control transfers, and the timing and subsequent treatment of non-cash consideration measured at fair value.

• Leases: IFRS 16 uses a largely single lessee accounting model, while U.S. GAAP retains separate operating- and finance-lease classifications. The video also contrasts the IFRS exemption for certain low-value assets and differences in how subleases are classified.

Standards inventory presented in the video

The presenter gives a snapshot of standards in force as of 2022. According to the video’s figures:

• IAS: 25 of the 41 IAS issued were in force.
• IAS interpretations: 5 of 33 interpretations were in force.
• IFRS: 16 of the 17 IFRS issued were in force; IFRS 4 had been replaced by IFRS 17.
• IFRS interpretations: 15 of 23 interpretations were in force.

Examples of standards mentioned include IAS 1 (presentation of financial statements), IAS 2 (inventories), IAS 7 (cash flows), IAS 16 (property, plant and equipment), IAS 19 (employee benefits), IFRS 9 (financial instruments), IFRS 15 (revenue), IFRS 16 (leases), and IFRS 17 (insurance contracts).

Speakers and sources featured

• Speaker: Eduardo Mosaiguate, the presenter and narrator. The subtitles identify him as speaking on the “Study Notes” channel; the supplied metadata identifies the channel as STUDIUM.
• Institutions and standards bodies discussed: FASB, IASB, IASC, the European Union, the U.S. Federal Reserve Board, the Federal Trade Commission, the New York Stock Exchange, and various national accounting organizations. These are discussed as institutions, not as additional speakers.